Monday ushered in the first big deal of 2014: Suntory’s takeover of Beam Inc. But the deal may not have been possible without William A. Ackman.
It was Mr. Ackman, founder of the hedge fund Pershing Square Capital Management, who pushed for the creation of Beam by calling for the breakup of its predecessor, Fortune Brands, a conglomerate that sold not only liquor but also golf equipment and home products.
Under pressure from Mr. Ackman, Fortune sold the golf business to a group led by Fila Korea and a South Korean private equity firm for about $1.2 billion in 2010.
It later spun off its home products division - including Moen faucets and Master Lock - to shareholders, creating a company with a current market value of about $7.8 billion.
What was left became Beam, whose shelf of spirit brands includes its namesake Jim Beam bourbon, Laphroaig Scotch whisky and Courvoisier cognac. The company’s stock price has climbed nearly 24 percent since becoming independent in October of 2011, giving it a market value of $10.9 billion as of Friday.
Even before the breakup of Fortune, its liquor arm had been the subject of takeover speculation. Indeed, at least one major competitor had made informal inquiries about buying the business before the spinoffs, a person briefed on the matter said at the time.
And news reports have often named Diageo and Pernod Ricard as potential buyers.
Shares of Beam are up 25 percent in premarket trading on Monday, surpassing Suntory’s offer of $83.50 a share. That suggests investors think a rival bid may yet emerge.
A bidding war could prove beneficial to investors, including Mr. Ackman, whose firm owned a 12.8 percent stake in the company as of Sept. 30.
